Carter Jonas acquired the freehold of an office building for client, Trinity Hall, and then achieved full occupancy and lower service charges through effective property management.
Our Team purchased this four-storey, 18,000 sq ft, office block in Hills Road, Cambridge, for management client Trinity Hall. It was already let to high quality tenants including the Royal Bank of Scotland and the Secretary of State for Defence. However, most of the top floor had been vacant for several years.
A review showed that the building had a history of high service charges, deterring prospective top-floor tenants. The client was also losing money due to a service charge cap being lower than actual service charge costs. A new intercom and camera system were installed in the main reception, along with PIR motion-activated lighting in the common areas. This meant that a full-time building manager/security guard was no longer required, and resulted in energy savings.
Working with the tenants, new service charge contracts were drawn up and re-tendered. As a result, service charge expenditure has been reduced by several pounds per sq ft, and is below the cap. The reduction also attracted a new tenant to the vacant top floor space. The client has therefore made significant savings, increased the investment value of the property, and has happy tenants.